§ 55B-7. Death or disqualification of a stockholder or employee. - North Carolina Statutes

§55B‑7.  Death or disqualification of a stockholder or employee.

(a)        If any officer,shareholder, agent or employee of a corporation organized under this Chapterwho is a licensee becomes legally disqualified to render professional serviceswithin this State, he shall sever all employment with, and financial interestin, such corporation forthwith. A corporation's failure to comply with thisprovision shall constitute grounds for the forfeiture of its certificate ofincorporation and its dissolution. When a corporation's failure to comply withthis provision is brought to the attention of the Secretary of State, theSecretary of State shall forthwith certify that fact to the Attorney Generalfor appropriate action to dissolve the corporation.

(b)        A professionalcorporation shall report to the appropriate licensing board the death of any ofits shareholders within 30 days thereafter. Within one year of the date of suchdeath, all of the shares owned by such deceased shareholder shall betransferred to and acquired by the professional corporation or personsqualified to own such shares. In the absence of an agreement which determinesthe equitable value of the shares, then the price for such shares shall be thefair market value of the stock, but not less than the book value as of the endof the month immediately preceding the death or disqualification.Notwithstanding any other provisions of this Chapter, the shares of stock ownedby such deceased shareholder may be owned and held by the person or persons whomay be legally entitled to receive such shares for a period of one year afterthe death of such deceased shareholder, or in the case of the death of theowner of all the shares of such corporation, for such period of time as may benecessary to liquidate the corporation. (1969, c. 718, s. 7.)